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Cheetah Mobile, Inc. Class Action Lawsuit

Case Summary

Company Name
Cheetah Mobile, Inc.
Stock Symbol
CMCM
Class Period
March 25, 2019 to February 20, 2020
Court
Central District of California

The Cheetah Mobile, Inc. class action lawsuit charges Cheetah Mobile and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Cheetah Mobile securities between March 25, 2019 and February 20, 2020, inclusive (the “Class Period”).  The Cheetah Mobile class action lawsuit was commenced on June 25, 2020 in the Central District of California and is captioned Azure Funds LLC v. Cheetah Mobile, Inc., No. 20-cv-05696.

Cheetah Mobile is a mobile Internet company that offers mobile utility products (such as Clean Master and Cheetah Keyboard), casual games (such as Piano  Tiles 2, Bricks n Balls), and live streaming product Live.me.  Cheetah Mobile provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to targeted mobile users and global promotional channels.

The Cheetah Mobile class action lawsuit alleges that defendants failed to disclose to investors that: (i) certain of Cheetah Mobile’s apps were not compliant with the terms of its agreements with Google; (ii) as a result, there was a reasonable likelihood that Google would terminate its advertising contracts with Cheetah Mobile; (iii) as a result of the foregoing, Cheetah Mobile’s ability to attract new users would be adversely impacted; (iv) as a result, Cheetah Mobile’s revenue was reasonably likely to decline; and (v) as a result of the foregoing, defendants’ positive statements about Cheetah Mobile’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Then, on February 21, 2020, Cheetah Mobile disclosed that its Google Play Store, Google AdMob, and Google AdManager accounts had been disabled on February 20, 2020 “because some [Cheetah Mobile] apps had not been compliant with Google policies, resulting in certain invalid traffic.” On this news, the price of Cheetah Mobile shares fell nearly 17%.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: March 25, 2019 - February 20, 2020
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